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SUN TV 2017-18 Annual Report Analysis
Sat, 31 Mar

SUN TV has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

SUN TV Income Statement Analysis

  • Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 67.6% in FY18 as against 65.0% in FY17.
  • Depreciation charges increased by 12.4% and finance costs increased by 4.9% YoY, respectively.
  • Other income declined by 30.2% YoY.
  • Net profit for the year grew by 11.0% YoY.
  • Net profit margins during the year declined from 37.9% in FY17 to 37.5% in FY18.

SUN TV Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 26,457 29,630 12.0%
Other income Rs m 2,038 1,423 -30.2%
Total Revenues Rs m 28,496 31,053 9.0%
Gross profit Rs m 17,198 20,038 16.5%
Depreciation Rs m 4,005 4,500 12.4%
Interest Rs m 10 11 4.9%
Profit before tax Rs m 15,222 16,950 11.4%
Tax Rs m 5,203 5,824 12.0%
Profit after tax Rs m 10,019 11,125 11.0%
Gross profit margin % 65.0 67.6
Effective tax rate % 34.2 34.4
Net profit margin % 37.9 37.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SUN TV Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 75.2%.
  • Current assets rose 37% and stood at Rs 31 billion, while fixed assets rose 3% and stood at Rs 22 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 53 billion as against Rs 44 billion during FY17, thereby witnessing a growth of 20%.

SUN TV Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 40,285 46,884 16.4
 
Current Liabilities Rs m 2,806 4,917 75.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 43,782 52,732 20.4
 
Current assets Rs m 22,628 30,996 37.0
Fixed Assets Rs m 21,153 21,737 2.8
Total Assets Rs m 43,782 52,732 20.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SUN TV Cash Flow Statement Analysis

  • SUN TV's cash flow from operating activities (CFO) during FY18 stood at Rs 14 billion, an improvement of 5.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -13 billion, an improvement of 80.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -4 billion from the Rs 1 billion net cash flows seen during FY17.

SUN TV Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 12,955 13,712 5.8%
Cash Flow from Investing Activities Rs m -7,165 -12,946 -
Cash Flow from Financing Activities Rs m -4,753 -4,754 -
Net Cash Flow Rs m 1,038 -3,982 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SUN TV

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.2, an improvement from the EPS of Rs 25.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 846.7, stands at 30.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 11.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 67.1 75.2
TTM Earnings per share Rs 25.4 28.2
Diluted earnings per share Rs 25.4 28.2
Price to Cash Flow x 22.5 22.1
TTM P/E ratio x 32.2 30.5
Price / Book Value ratio x 5.5 7.4
Market Cap Rs m 223,446 344,696
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SUN TV

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 6.3x during FY18, from 8.1x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 1,570.4x during FY18, from 1,478.8x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 23.7% during FY18, from 24.9% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 36.2% during FY18, from 37.8% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 21.1% during FY18, from 22.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 8.1 6.3
Debtors’ Days Days 11 13
Interest coverage x 1,478.8 1,570.4
Debt to equity ratio x 0.0 0.0
Return on assets % 22.9 21.1
Return on equity % 24.9 23.7
Return on capital employed % 37.8 36.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SUN TV has performed over the last 5 years, please visit here.

SUN TV Share Price Performance

Over the last one year, SUN TV share price has moved up from Rs 799.5 to Rs 846.7, registering a gain of Rs 47.2 or around 5.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for SUN TV and quarterly results for SUN TV)

Annual Report FAQs

What is the current share price of SUN TV?

SUN TV currently trades at Rs 585.5 per share. You can check out the latest share price performance of SUN TV here...

What was the revenue of SUN TV in FY18? How does it compare to earlier years?

The revenues of SUN TV stood at Rs 31,053 m in FY18, which was up 9.0% compared to Rs 28,496 m reported in FY17.

SUN TV's revenue has grown from Rs 23,102 m in FY14 to Rs 31,053 m in FY18.

Over the past 5 years, the revenue of SUN TV has grown at a CAGR of 7.7%.

What was the net profit of SUN TV in FY18? How does it compare to earlier years?

The net profit of SUN TV stood at Rs 11,125 m in FY18, which was up 11.0% compared to Rs 10,019 m reported in FY17.

This compares to a net profit of Rs 8,914 m in FY16 and a net profit of Rs 7,826 m in FY15.

Over the past 5 years, SUN TV net profit has grown at a CAGR of 10.5%.

What does the cash flow statement of SUN TV reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SUN TV reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 13,712 m as compared to Rs 12,955 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -12,946 m as compared to Rs -7,165 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -4,754 m as compared to Rs -4,753 m in FY17.

Here's the cash flow statement of SUN TV for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations11,94711,62312,99012,95513,712
From Investments-7,860-5,183-4,013-7,165-12,946
From Financial Activity-4,308-6,348-7,374-4,753-4,754
Net Cashflow-223891,6021,038-3,982

What does the Key Ratio analysis of SUN TV reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SUN TV reveals:

  • Operating profit margins witnessed a fall and down at 67.6% in FY18 as against 65.0% in FY17.
  • Net profit margins declined from 37.9% in FY17 to 37.5% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of SUN TV for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)67.870.070.865.067.6
Net Profit Margin (%)33.532.736.037.937.5
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SUN TV

 

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